How To Avoid Bad Faith Claims In A Recession

In the worst recession since the 1930’s, most insurers are forced to consider reductions in staff and training expenses. An insufficient staff of properly trained adjusters is one short step from potential bad faith claims.

Here are a few ideas to consider:

• Retain the best and most experienced adjusters by finding non-economic ways to encourage them to stay
• Don’t replace departing adjusters familiar with first-party claims with liability adjusters (see more below)
• Training, training, training – Don’t cut back on Training!
• Teach your staff to give honest and attainable deadlines to insureds (see more later)
• Remember to smile. Every day brings new problems, but also new rewards!

Claims managers often replace a departing adjuster with years of experience adjusting first-party claims with an adjuster who has only adjusted third-party or liability losses. It is usually done hurriedly and without much additional training. The newly promoted adjuster does things the same way she always did. After all, it got her promoted! Success in adjusting, settling, and compromising third-party losses is significantly different from adjusting the insured’s losses covered by his own insurance.

Is your training budget being reduced? Consider asking experienced adjusters to give a one hour class covering topics new adjusters struggle over, such as proof of loss forms, reservation of rights letters, and non-waivers. No one ever learns more from teaching than the person tutoring the class. It’s hard to explain subtle distinctions if you don’t understand them. You refresh the knowledge of your experienced staff while training the new recruits. It also gives a recognized source for information in the company for the less experienced adjusters who may not want you to think they don’t know how to do their job.

Many law firms are willing to host in-house seminars at little or no cost. Think about having a knowledgeable, competent team of lawyers provide four hours of their time in a seminar or “lunch and learn” type program. Tapping into your counsel’s legal talent also allows you to test their knowledge of the subject matter and see how well they think on their feet.

Assign teams in your office for a short 20 minute pop quiz. Let the winning team go home 30 minutes early on Friday or come in 30 minutes late!

Training reinforces what your adjusters already know and builds on the knowledge base of those less experienced.

Everyone needs a certain amount of reminding. Whatever you choose to do in terms of budget reductions, never cut back on training.

Successful training doesn’t have to be expensive, but it should be interesting and fun!

Let us help with training seminars at your location. Call now for details 1-866-959-3185.